I have the same car but I have never checked to see if my headlights adjust and I also don't believe I have HID. My cousin however has a 99 e46 328 and I know his has HID's and I know they do adjust when he turns them on. Was one of the first things I noticed when in his car. I otherwise know nothing about this except that you were not seeing things. Thought id reply since no one else had.